The End of Bernanke’s “End Game”

William Anderson

5/16/2011

Bernanke’s minions entered the financial marketplace with a bottomless checkbook, purchasing assets that had lost value (like mortgage securities, AIG stock, and the like) in the marketplace. However, in order to make it look as though the markets were fine, the Fed purchased these securities at prices close to their precollapse worth; Bernanke and company were playing the let’s-pretend-this-worthless-paper-is-valuable game.

If you want a sense of just how reckless the Fed turned out to be in its rich-uncle role, the diagram below will help put things into perspective:

And now… the rest of the story. …..